REG announces $31M upgrade to Danville, Illinois, biodiesel plant

Renewable Energy Group Inc. announced July 17 that it will invest $31 million to upgrade and enhance the company’s Danville, Illinois, biodiesel refinery.

REG officials gathered in Danville with local and area leaders to break ground on the project. The most notable upgrade will be the addition of biodiesel distillation capabilities to the 45 MMgy nameplate capacity biorefinery. Other planned upgrades include pretreat capacity improvements, along with storage, logistics and other optimization enhancements.

“REG Danville already has a proven record of success as part of our network of multifeedstock biorefineries,” said Daniel J. Oh, president and CEO. “Enhancing the capabilities here, as we have done at  several of our other plants, can allow REG to provide greater volumes of lower cost, lower carbon, higher quality advanced biofuel to our customers that increases energy security, food security and environmental benefits for North America.”

The distillation process removes impurities and leaves behind a pure form of biodiesel that far exceeds industry quality standards, while meeting REG’s more rigorous REG-9000 specifications. The fuel also performs better in colder temperatures.

“These upgrades increase this biorefinery’s strong and healthy appetite for lower cost, waste feedstocks sourced locally and regionally from our supply chain partners,” said Brad Albin, vice president of manufacturing.

Fifth Third Bank will reinvest in the REG Danville facility by financing up to $12 million of the cost of the project. The existing loan facility, which was nearly paid off, will provide additional funds and the term will be extended to December 2017.

REG acquired the Danville biorefinery in 2010. The plant currently employs 34 fulltime workers and the upgrade project will utilize an additional 80 to 100 fulltime contract workers.

“REG has been a dedicated partner to the city of Danville and we are excited by the additional investment they are making in our community,” said Danville Mayor Scott Eisenhauer. “We are very pleased by the jobs and economic develop this expansion brings.”

The Danville project marks the sixth major biorefinery enhancement REG has undertaken since late 2012, following completed upgrades at their Albert Lea, Minnesota, Seneca, Illinois, Mason City and Newton, Iowa, biodiesel plants and ongoing improvements at the company’s renewable hydrocarbon diesel biorefinery in Geismar, Louisiana.